The official Government Help to Buy website
First-time homebuyers who are eligible for an equity loan can borrow up to 20% (40% in London) of the purchase price of a new build home. Check with your homebuilder that they are registered for the scheme before you apply.
How much you can spend on your home will depend on which region it is in.
|Region||Price cap for Help to Buy
homes April 2021 to March 2023
|Yorkshire and The Humber||£228,100|
|East of England||£407,400|
You pay a deposit of 5% of the purchase price of your new home at exchange of contracts and arrange a repayment mortgage of at least 25% of the purchase price of your new home.
You won’t be charged interest on the equity loan for the first 5 years. Interest fees start at 1.75% and rise each year in April by the Consumer Prices Index (CPI) plus 2%. You pay a monthly management fee of £1 for the life of the equity loan.
An equity loan is secured against your property in the same way as a repayment mortgage. You must repay the equity loan when you sell the home, pay off your repayment mortgage or reach the end of your equity loan term. But, you can repay all or part of the equity loan any time before then.
To find out more about the scheme and how to apply, download the homebuyers guide to Help to Buy: Equity Loan (2021-2023)
An independent financial adviser may be able to help you decide if Help to Buy: Equity Loan is right for you. Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan or other loans secured against it.